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Watsco Inc
NYSE:WSO

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Watsco Inc Logo
Watsco Inc
NYSE:WSO
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Price: 299.63 USD +1.57% Market Closed
Updated: Mar 25, 2023

Intrinsic Value

The intrinsic value of one WSO stock under the Base Case scenario is 267.82 USD. Compared to the current market price of 299.63 USD, Watsco Inc is Overvalued by 11%.

The Intrinsic Value is calculated as the average of the two valuation methods:

WSO Intrinsic Value
Base Case
267.82 USD
Overvaluation 11%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Fundamental Analysis

WSO Profitability Score
Profitability Due Diligence

Watsco Inc's profitability score is 61/100. The higher the profitability score, the more profitable the company is.

Positive Net Income
Positive Operating Income
Negative 1-Year Revenue Growth
Positive Revenue Growth Forecast
61/100
Profitability
Score

Watsco Inc's profitability score is 61/100. The higher the profitability score, the more profitable the company is.

WSO Solvency Score
Solvency Due Diligence

Watsco Inc's solvency score is 92/100. The higher the solvency score, the more solvent the company is.

Long-Term Liabilities
Short-Term Liabilities
Low D/E
Negative Net Debt
92/100
Solvency
Score

Watsco Inc's solvency score is 92/100. The higher the solvency score, the more solvent the company is.

Financials

Balance Sheet Decomposition
Watsco Inc

Current Assets 2.3B
Cash & Short-Term Investments 148M
Receivables 747M
Other Current Assets 1.4B
Non-Current Assets 1.2B
Long-Term Investments 133M
PP&E 443M
Intangibles 606M
Other Non-Current Assets 8M
Current Liabilities 907M
Accounts Payable 456M
Accrued Liabilities 391M
Other Current Liabilities 59.9M
Non-Current Liabilities 692M
Long-Term Debt 11.4M
Other Non-Current Liabilities 681M
Efficiency
28%
Gross Margin
11%
Operating Margin
8%
Net Margin
7%
FCF Margin
Other

WSO Capital Structure
Watsco Inc

Market Capitalization 11.7B USD
Total Debt 11.4M USD
Minority Interest 359M USD
Preferred Equity 0 USD
Cash and Equivalents 148M USD
Short-Term Investments 0 USD
Enterprise Value 11.9B USD

Wall St
Price Targets

WSO Price Targets Summary
Watsco Inc

Wall Street analysts forecast WSO stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for WSO is 310.28 USD with a low forecast of 220.18 USD and a high forecast of 393.75 USD.

Lowest
Price Target
220.18 USD
27% Downside
Average
Price Target
310.28 USD
4% Upside
Highest
Price Target
393.75 USD
31% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

WSO Competitors
Watsco Inc

WSO Suppliers & Customers
Watsco Inc

Suppliers Map
Customers Map

Ownership

WSO Insider Trading
Buy and sell transactions by insiders

Watsco Inc insiders have only sold shares in the past 12 months.

During the last 12 months Watsco Inc insiders have not bought any shares, and sold 460k USD worth of shares. The last transaction was made on Mar 25, 2023 by Alvarez Cesar L (Director), who sold 460k USD worth of WSO shares.

Sold
0-3
months
0 USD
0
3-6
months
0 USD
0
6-9
months
0 USD
0
9-12
months
460k USD
1
Bought
0-3
months
No Insider Transactions
0
0 USD
3-6
months
No Insider Transactions
0
0 USD
6-9
months
No Insider Transactions
0
0 USD
9-12
months
0
0 USD
Cumulative Transactions Amount
Period Sold Bought Net
3 Months
N/A
N/A
N/A
6 Months
N/A
N/A
N/A
9 Months
N/A
N/A
N/A
12 Months
460k USD
N/A
-459.5k
Purchases
15
Sales
41
No transactions found
Why is insider trading important?

Shareholder Return

WSO Return Decomposition
Main factors of price return

Market capitalization of WSO shares increased by 96.84% over the past 5 years. The primary factor behind the change was an increase in earnings growth from 198M to 550M, leading to a growth in the market capitalization of Watsco Inc by 145.75%.

Market capitalization of WSO shares increased by 96.84% over the past 5 years. The primary factor behind the change was an increase in earnings growth from 198M to 550M, leading to a growth in the market capitalization of Watsco Inc by 145.75%.

+96.84%
5.9B 11.7B
Market Cap Growth
-48.91%
29.9 21.2
P/E Change
+145.75%
198M 550M
Earnings Growth
Market Cap Growth
+96.84%
P/E Change
-48.91%
Earnings Growth
+145.75%
What is price return decomposition?

WSO Price
Watsco Inc

1M 1M
-2%
6M 6M
+18%
1Y 1Y
+2%
3Y 3Y
+129%
5Y 5Y
+97%
Annual Price Range
299.63
52w Low
224.94
52w High
324.1
Price Metrics
Average Annual Return 21.02%
Standard Deviation of Annual Returns 27.4%
Max Drawdown -30%
Shares Statistics
Market Capitalization 11.7B USD
Shares Outstanding 38 962 754
Percentage of Shares Shorted 12.45%

Company Profile

Watsco Inc Logo
Watsco Inc

Country

United States of America

Industry

Trading Companies & Distributors

Market Cap

11.7B USD

Dividend Yield

2.85%

Description

Watsco, Inc. engages in distribution of air conditioning, heating and refrigeration equipment and related parts. The company is headquartered in Coconut Grove, Florida and currently employs 6,850 full-time employees. The firm sells a range of non-equipment products including parts, ductwork, air movement products, insulation, tools, installation supplies, thermostats, and air quality products. Its products include condensing units, compressors, evaporators, valves, refrigerant, walk-in coolers, and ice machines for industrial and commercial applications. The firm distributes products manufactured by Flexible Technologies, Inc. (Flexible Technologies), Resideo Technologies, Inc. (Resideo), Southwark Metal Mfg. Co. (Southwark), Johns Manville and Owens Corning Insulating Systems, LLC (Owens Corning), among others. The company operates from approximately 671 locations in 42 United States, Canada, Mexico and Puerto Rico with additional market coverage on an export basis to portions of Latin America and the Caribbean.

Contact

FLORIDA
Coconut Grove
2665 S Bayshore Dr Ste 901
+13057144100.0
https://www.watsco.com/

IPO

1994-06-16

Employees

6 850

Officers

Chairman & CEO
Mr. Albert H. Nahmad
Pres & Director
Mr. Aaron J. Nahmad
CFO & Treasurer
Ms. Ana M. Menendez
Exec. VP of Planning & Strategy and Sec.
Mr. Barry S. Logan
Chief Technology Officer
Mr. Steven Rupp
Exec. VP
Mr. Paul W. Johnston
Show More
VP of Corp. Devel.
Mr. Rick Gomez
Show Less

See Also

Similar Stocks
What is the Intrinsic Value of one WSO stock?

The intrinsic value of one WSO stock under the Base Case scenario is 267.82 USD.

Is WSO stock undervalued or overvalued?

Compared to the current market price of 299.63 USD, Watsco Inc is Overvalued by 11%.